Case Study: Cox Auto Auction

Improved Essays
I have the amazing opportunity to work for a company that truly values an entrepreneurial spirit and embraces invention. Cox Automotive is comprised of numerous companies that primarily service the retail and wholesale automotive industries. In the US, the automotive industry has been in a mature phase of its life cycle for many years. I work for Manheim Auto Auction, which is a company within Cox Automotive. Manheim was established in 1945 as a wholesale vehicle auction. Manheim is extremely large in scope and has sold over 100 million cars since 1945. Currently, Manheim registers just under 7 million cars annually (Manheim, n.d.). With this business comes complicated compliance related issues and overwhelming operational challenges. Despite …show more content…
Many trends are initiated through new technology and they posses the the potential to permanently alter the overall industry (Gao, Kaas, Mohr, & Wee, 2016). From fun small ideas, such as a tinder type phone app for choosing your next vehicle, to a fully autonomous car the breadth of new ideas is wide. The future of the automotive industry, or any industry for that matter, can not be predicted with full certainty. Reports indicate that as many as 15 percent of new cars sold in 2030 could be fully autonomous (Shahani, 2014). This technology has the ability to change the playing field. Traditional car manufacturers need to leverage this time to fully embrace the technological changes, as well as the social shift. Companies such as Google have announced their interest to enter into the large and profitable automotive industry. How amazing would it be, if I could safely do my homework for this class during my commute time? Today’s consumer cares less about driving a prestigious car and more about its technology, functionality, and how it contributes to their overall quality of …show more content…
There are a few companies that currently offer shared vehicles programs, for example, Car2go which is located nationally in 15 major metropolitan areas. Car2go has a fleet of smart cars, that can be picked up anytime you see one near you or though a reserve system (Car2go US, n.d.). Personally, I have driven a smart car, and I would prefer not to drive one again. However, if you live in Washington DC and don’t want to own a car, but need one from time to time, for forty-one cents per mile you can hop in one of their little cars. These vehicles though are not very practical for families or anyone with more than one passengers. A newer concept that has yet to be fully developed is a shared fleet of vehicles that offer a wider . The idea is that a customer could pay a weekly or monthly lease rate based on the type of vehicle borrowed. For example, if I am going on vacation to the beach I might take a minivan for the week. If I am commuting far distances I might choose a hybrid, and if I have a special date with my husband I might borrow a convertible for the occasion. This directly ties to the shift in social values and attitudes tied to car ownership. The challenge with this type of system is inventory meeting demands and still remaining profitable. This would be an opportunity for an OEM who can acquire a wide range of vehicles at a reduced cost and pull from a larger inventory overall.

Related Documents

  • Great Essays

    Rhetorical Strategies of Will Knight and Thomas Frey’s articles Background and Intro - With so many cars on the roads today and cities as congested as ever, companies are looking at the many ways we can make the entire commuting process better. Tesla released its first semi-autonomous car back in 2015 with the hopes that it would be the initial push for the entire industry. Autonomous cars really picked up throughout the early 2000s with Google’s self-driving car project.…

    • 1466 Words
    • 6 Pages
    Great Essays
  • Improved Essays

    Self Driving Cars : A Rhetorical Analysis Every day self driving cars are becoming more of a possibility and less a thing of science fiction. With car manufacturers all racing to create the first self driving car, the future may hold safer roads. Unfortunately the speed at which most of these companies are trying to make these invitations could pose a safety problem to people on the road. “The Dangers of ‘Self-Driving’ Car Hype”, Scott Keogh reasons that at the rate car manufacturers are trying to make involutions may make some people worrisome but that in the long run self driving cars will be valued.…

    • 1315 Words
    • 6 Pages
    Improved Essays
  • Decent Essays

    Your five-year-old cousin Suzy comes up to you and says she wants to drive to work with Auntie. Your mother agrees and even gives her the choice to ride in the driver’s seat. With shouts of glee, your little cousin plops herself in the driver’s seat. As they drive away from your house, you wave goodbye, knowing that your mother is safe under the driving ability of Suzy. Wait…what?!…

    • 490 Words
    • 2 Pages
    Decent Essays
  • Improved Essays

    Bilger, Burkhard. " Has the Self-Driving Car Arrived at Last?" The New Yorker, 25 Nov. 2013 Burkard, a two-time winner of The National Magazine awards writes a thought provoking article about the possibility of an accident and delay free commute made reality by a ground breaking invention, Google’s driverless car. This revolutionary idea stemmed from Google X, a semi-secret lab for experimental technologies.…

    • 1033 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Although, due to the current political regulations surrounding the automotive industry, it is illegal in most states for a car manufacturer to sell directly to consumers. Therefore, Tesla has made online purchasing the primary means of selling vehicles. In states that the company cannot legally sell, in they can discuss the possibility of a sell to a customer at one of their facilities in state. The customer can then place their order online and Tesla will deliver the finalized product to either the Tesla facility near them or deliver directly to the consumer’s…

    • 1053 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Lyft Car Essay

    • 933 Words
    • 4 Pages

    Background The sharing economy has upended the operating model of many industries leaving many companies struggling to adjust to the changes. Car manufacturers have remained unaffected, but many now feel that this reprieve may be temporary. The sharing economy’s origins can be traced back to the start of EBay in 1995 . EBay provided users an international platform to sell their personal items.…

    • 933 Words
    • 4 Pages
    Improved Essays
  • Decent Essays

    30,000 Americans are killed on the road every year due to texting while driving and other distractions. Some deaths are pedestrians and most are drivers. Due to this problem, engineers and scientists have been trying to find a way to prevent these accidents, therefore they came up with an idea of a self-driving car. Engineers are building the car so that you don't need to drive the car at all. Since that is happening people are expecting some entertainment so the car will have tv, video games,wi-fi, etc.…

    • 481 Words
    • 2 Pages
    Decent Essays
  • Superior Essays

    In the World today, technology is evolving at an unimaginable rate. There are advancements happening in medicine and in engineering that was thought to be distant only a few years ago, and some that were only dreamt of in the 20th century. One of these many advancements has been in the creation of autonomous cars which have started emerging all around the world by companies like Google, Tesla, and some major car companies. Although there are some who are skeptical of the automation of cars with the reports of accidents from the likes of Tesla’s self-driving cars and even Google’s, there are also many benefits to the automation of transportation and it will even change the approach to travel in general and how people interact within their vehicles. Self-driving cars are no doubt the way of the future and will soon be a part of everyday life, but for now, there are still issues around them being brought up in pop-culture.…

    • 1703 Words
    • 7 Pages
    Superior Essays
  • Great Essays

    Essay On Car Culture

    • 1384 Words
    • 6 Pages

    Buying, owning, and driving a car has probably been high up on a list of accomplishments since being just a teenager. For most, the love of their car usually ends after a new carwash or oil change. But for millions of others, the love of cars goes much further. Whether it be for style, popularity, or functionality, a car culture…

    • 1384 Words
    • 6 Pages
    Great Essays
  • Improved Essays

    The creation of the automobile has gone through drastic changes since 1885. Amazingly enough, today some automobiles do not run on fuel. Most people felt the electric car was innovated, until engineers from Google introduced their technology for a driverless car. They advertised this idea as a way to decrease car accidents in the United States of America. Alarming, the Center for Disease Control estimates 33,000 people die annual from traffic accidents (Top 20 1).…

    • 740 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    3.6. Industry Driving Force Automotive industry is facing tough challenges in the future. There are some challenges that carmakers need to address to sustain their profitability. Some industry driving forces that will shape the future of the automobile industry are as follow: 1. Shift in consumer demand.…

    • 722 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Benefits Of Driverless Car

    • 1063 Words
    • 5 Pages

    Driverless car is a work in progress that is potentially important in technology where a computer would drive the car instead of a person. Tyler Cowen, professor of economics at George Mason University says, “The benefits of driverless cars are potentially significant. The typical American spends an average of roughly 100 hours a year in traffic; imagine using that time in better ways — by working or just having fun” (1). Cowen is sure that the transit system will work much better if people would use the system driverless cars. Even though driverless cars are not legal in any states of the United States, it can be a reality very soon…

    • 1063 Words
    • 5 Pages
    Improved Essays
  • Great Essays

    Uber Corporate Strategy

    • 1010 Words
    • 5 Pages

    This essay aims to demonstrate the possible influences of autonomous vehicles on the strategic planning of ride hailing industry with a specific company - Uber Technologies Inc.. In the following paragraphs, the changes Uber might make on their business-level strategy would be illustrated with the mention of PESTEL framework and strategic alliance. Subsequently, it is indicated that Uber is able to achieve competitive advantages by implementing the diversification of corporate-level strategy. The challenges Uber face are demonstrated along with some recommendations at the end of the essay.…

    • 1010 Words
    • 5 Pages
    Great Essays
  • Great Essays

    Auto pilot driving, also called self-driving, a brand new industry that arises public concern currently, was initiated by Tesla Motor within current two years. As literally defines, autopilot driving is a system used in a car to drive or operate without hand-in control by drivers. Tesla Motor, obviously, is not the first enterprise, nor the only enterprise entering this new market. However, we cannot deny that this flag Silicon Valley company successfully attracts public’s focus; more importantly, it launched a new industrial revolution that other technical giants, such as Google, began to compete with Tesla in this new market. Naturally, Google establishes a department as well to research on self-driving car to catch up the technical speed.…

    • 1104 Words
    • 5 Pages
    Great Essays
  • Great Essays

    Segmentation Demographic: Age: 35 to 55 years old Generation: Mid Generation Gender: 90% are male Education: 39% post graduate degrees, 79% college graduates Occupation: Professionals, entrepreneurs, high-profile individuals, 82% are self-employed Income: Annual income of USD 200K - 400K Psychographic: Consumers owning a Ferrari is consistent with their self-identity as connoisseurs of the very best Their satisfaction comes from the cars incomparable aesthetics and superior engineering Let others know that they are members of an elite class…

    • 2187 Words
    • 9 Pages
    Great Essays